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A concession agreement is a negotiated contract that allows a company to conduct business under specific conditions. It has two primary interpretations: first, it pertains to a contract between a foreign company and a government, enabling the company to operate in that country. Second, it grants the concessionaire exclusive rights to operate in a specific area or venue under negotiated terms. Typically, these agreements involve negotiations where governments may offer incentives like reduced taxes or relaxed regulations. Conversely, if a government is less cooperative, the company might have to make concessions to gain permission to operate.
